Atal Pension Yojana: Earn Rs. 5000 per month

The Government of India has introduced a special pension scheme to provide a defined pension to the citizens in the unorganized sector. Pension scheme called the Atal Pension Scheme launched in the budget 2015-16. Earlier, Government had launched the Swavalamban Scheme in 2010 to provide the pension benefits to unorganized sector based on their contribution but in this scheme there were no guaranteed benefits. Therefore government relaunched this scheme with a new name Atal Pension Yojana with guaranteed benefits and with new rules. This scheme introduced in June 2015. In this scheme, subscriber would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month or Rs. 5000 per month at the age of 60 years depending on their contributions. The contributions would be based on the age of joining the APY. Under this scheme, the benefit of fixed minimum pension would be guaranteed by the government. The details of the scheme are as under:

What is the purpose of Atal Pension Yojana?

The main objective of the scheme is to encourage the persons to have small amounts during their productive years to enable them to draw a pension in old age. It has been administered by Pension Fund Regulatory and Development Authority (PFRDA) under the platform of National Pension Scheme.

Who are eligible to apply for Atal Pension Yojana?

Any citizen of India in unorganized sector.

The subscriber must have a saving bank account or a post office saving bank account.

The age limit for Atal Pension Scheme is 18 years and not more than 40 years.

The subscriber must have a valid mobile number and aadhaar number. If at the time of joining the scheme the subscriber doesn’t have a aadhaar no. he/she can submit it within in a prescribed time.

But the subscribers of Swavalamban scheme are automatically migrated in this scheme who are between the age of 18-40 years and those who are above the age of 40 years, have the option, if they do not want to continue in Atal Pension Scheme, can withdraw the lump sum amount or to continue till the age of 60 years and be eligible for the annuities there under.

What is the Government contribution in Atal Pension Yojana?

The Government co-contributes 50% of the total contribution or Rs.1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years i.e. from F/Y 2015-16 to 2019-20. But the benefit of the government contribution would be available to swavalamban beneficiary for 4 years as they already received the government contribution for 1 year in Swavalamban scheme.

Who are eligible for government contribution?

Government should contribute in the account of the following subscriber:

The subscriber should join the scheme between 01.06.2015 to 31.12.2015.

The subscriber is not income tax payers.

The subscriber is not member of any statutory social security scheme.

What is the procedure for opening an Atal pension account?

If the subscriber is a bank account holder-

Firstly, the subscriber should submit the Atal Pension Scheme form with necessary information.

Mobile no., aadhaar no., spouse name and nominee name is mandatory for this application.

Deposit the amount of initial contribution selected by the subscriber according to the type of pension.

Submit the authorization letter to the bank for the monthly auto debit option for remittance of contribution.

After submitting the above documents the Permanent Retirement Account Number (PRAN) received by the subscriber, immediately which is written by the bank on the acknowledgement and hands it over to the subscriber over the counter.

If the subscriber is a non bank account holder-

Firstly, the subscriber should open a bank account by providing the KYC documents.

After opening an account, the subscriber should submit the APY form with necessary information.

Mobile no., aadhaar no., spouse name and nominee name is mandatory for this application.

Deposit the amount of initial contribution selected by the subscriber according to the type of pension.

Submit the authorization letter to the bank for the monthly auto debit option for remittance of contribution.

After submitting the above documents the Permanent Retirement Account Number (PRAN) received by the subscriber, immediately which is written by the bank on the acknowledgement and hands it over to the subscriber over the counter.

If the subscriber doesn’t have an aadhaar, he can apply for the Atal Pension Scheme account but they need to submit their aadhaar details within specified time duration.

How to contribute in Atal Pension Yojana?

Contributions are to be deposited by selecting monthly auto debit facility.

What is the penalty for non-payment of the contribution in Atal Pension Yojana?

The subscriber shall pay penalty for non-payment of the contribution. The penalty will vary according the amount of contribution.

1 per month for contribution upto Rs.100 per month.

2 per month for contribution upto Rs.101 to 500 per month.

5 per month for contribution between Rs.501 to 1000 per month.

10 per month for contribution beyond Rs.1001 per month.

The amount of penalty will remain as part of the pension corpus of the subscriber.

If the default continues the following action shall be taken:

The account shall be frozen after the 6 months of default.

The account shall be deactivated after the 12 months of default.

The account shall be closed after the 24 months of default.

After closing the account, the government contribution will be forfeited with penalty and subscriber can withdraw his contribution as lump sum.

How to get all forms related to Atal Pension Yojana?

Subscriber can get the all forms related to Atal Pension Scheme by clicking the following link:

Yes, Atal Pension Scheme is eligible for tax benefits. The additional deduction of upto Rs.50000 for the amount deposited in NPS account & Atal Pension by the taxpayer has allowed in section 80CCD(1B).

The subscribers get the periodical sms alerts on the registered mobile number in the bank or statement deliver to the address, of the subscriber by post. Address should be updated in Atal Pension Scheme data with bank.

What is the corpus amount

Corpus amount included-

Subscriber contribution

Government of India contribution

Interest returned on subscriber and government contribution

Where will the subscriber savings be invested?

The contributions under this scheme are invested as per the investment pattern specified by the Government.

G-Securities-Min-45% and up to 50%,

Debt Securities and term deposits of banks- minimum 35% and up to 45%,

Money market instruments minimum- up to 5%,

Equity and related instrument- minimum 5% up to 15%

Asset backed securities etc.-up to 5%.

The subscribers do not have any other choice on investment pattern or pension fund.

How will subscriber know his amount of contribution?

The government will provide a contribution chart to select the contribution amount by the subscriber. The subscribers can make the contribution monthly, quarterly and half yearly. Below, we provide the calculator for the contribution of the Atal Pension Scheme:

Age of entry

Years of contribution

Monthly Pension of Rs.1000

Indicative return of corpus to the nominee- Rs.1.7 lakh

monthly contribution

quarterly contribution

half yearly contribution

18

42

42

125

248

19

41

46

137

271

20

40

50

149

295

21

39

54

161

319

22

38

59

176

348

23

37

64

191

378

24

36

70

209

413

25

35

76

226

449

26

34

82

244

484

27

33

90

268

531

28

32

97

289

572

29

31

106

316

626

30

30

116

346

685

31

29

126

376

744

32

28

138

411

814

33

27

151

450

891

34

26

165

492

974

35

25

181

539

1068

36

24

198

590

1169

37

23

218

650

1287

38

22

240

715

1416

39

21

264

787

1558

40

20

291

876

1717

Age of entry

Years of contribution

Monthly Pension of Rs.2000

Indicative return of corpus to the nominee- Rs.3.4 lakh

monthly contribution

quarterly contribution

half yearly contribution

18

42

84

250

496

19

41

92

274

543

20

40

100

298

590

21

39

108

322

637

22

38

117

349

690

23

37

127

378

749

24

36

139

414

820

25

35

151

450

891

26

34

164

489

968

27

33

178

530

1050

28

32

194

578

1145

29

31

212

632

1251

30

30

231

688

1363

31

29

252

751

1487

32

28

276

823

1629

33

27

302

900

1782

34

26

330

983

1948

35

25

362

1079

2136

36

24

396

1180

2337

37

23

436

1299

2573

38

22

480

1430

2833

39

21

528

1574

3116

40

20

582

1734

3435

Age of entry

Years of contribution

Monthly Pension of Rs.3000

Indicative return of corpus to the nominee- Rs.5.1 lakh

monthly contribution

quarterly contribution

half yearly contribution

18

42

126

376

744

19

41

138

411

814

20

40

150

447

885

21

39

162

483

956

22

38

177

527

1046

23

37

192

572

1133

24

36

208

620

1228

25

35

226

674

1334

26

34

246

733

1452

27

33

268

799

1582

28

32

292

870

1723

29

31

318

948

1877

30

30

347

1034

2048

31

29

379

1129

2237

32

28

414

1234

2443

33

27

453

1350

2673

34

26

495

1475

2921

35

25

543

1618

3205

36

24

594

1770

3506

37

23

654

1949

3860

38

22

720

2146

4249

39

21

792

2360

4674

40

20

873

2602

5152

Age of entry

Years of contribution

Monthly Pension of Rs.4000

Indicative return of corpus to the nominee- Rs.6.8 lakh

monthly contribution

quarterly contribution

half yearly contribution

18

42

168

501

991

19

41

183

545

1080

20

40

198

590

1169

21

39

215

641

1269

22

38

234

697

1381

23

37

254

757

1499

24

36

277

826

1635

25

35

301

897

1776

26

34

327

975

1930

27

33

356

1061

2101

28

32

388

1156

2290

29

31

423

1261

2496

30

30

462

1377

2727

31

29

504

1502

2974

32

28

551

1642

3252

33

27

602

1794

3553

34

26

659

1964

3889

35

25

722

2152

4261

36

24

792

2360

4674

37

23

870

2593

5134

38

22

957

2852

5648

39

21

1054

3141

6220

40

20

1164

3469

6869

Age of entry

Years of contribution

Monthly Pension of Rs.5000

Indicative return of corpus to the nominee- Rs.8.5 lakh

monthly contribution

quarterly contribution

half yearly contribution

18

42

210

626

1239

19

41

228

679

1546

20

40

248

739

1464

21

39

269

802

1588

22

38

292

870

1723

23

37

318

948

1877

24

36

346

1031

2042

25

35

376

1121

2219

26

34

409

1219

2414

27

33

446

1329

2632

28

32

485

1445

2862

29

31

529

1577

3122

30

30

577

1720

3405

31

29

630

1878

3718

32

28

689

2053

4066

33

27

752

2241

4438

34

26

824

2456

4863

35

25

902

2688

5323

36

24

990

2950

5843

37

23

1087

3239

6415

38

22

1196

3564

7058

39

21

1318

3928

7778

40

20

1454

4333

8581

When will a subscriber be exit from the Atal Pension Yojana?

A subscriber can exit from the scheme on attaining the age of 60. On exit from the scheme, the subscriber will submit the request to the bank for withdrawal and get the pension according to their contribution. If he died after 60 years than pension will be available to the spouse and if both died (spouse and subscriber) then the accumulated pension wealth till the age of 60 years of the subscribner will be given to the nominee.

Whether exit before attaining the age of 60 is possible?

Yes, in the case of death/terminal disease of subscriber before the age of 60 years, the accumulated corpus would be available to the subscriber/nominee as the case may be or a option will be available to the spouse whether to continue the APY account of the subscriber with the predetermined contribution with the spouse name till the original subscriber would have attained the age of 60 years after that the pension would be available to spouse till the death of spouse.

Whether voluntary exit is possible before attaining the age of 60 years?

If the subscriber availed voluntary exit before 60 years, than he shall be received the amount of his contribution and interest earned thereon but he will not get the government contribution and interest thereon.

How to apply for voluntary exit before 60 years?

The subscriber can download the Atal Pension Scheme voluntary exit form by clicking here.

The subscriber should fill up the account closure form including the reason for closure and submit it to the bank.

The bank will verify the form and signature of the subscriber.

After accepting the form, the bank will provide a acknowledgement to the subscriber.

On receiving the application, the bank will intiate the closure procedure.

On completing the necessary procedure the bank will transferred the redeemed amount in the subscriber account.

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